Warsaw (Puls Biznesu) – The meat producer had another weak quarter. It promises improvement and big acquisitions. It considers a new share issue.
Duda, Poland’s biggest meat producer listed on the WSE, presented poor fourth quarter results. Sales amounted to PLN 368.6m (EUR 104.7m) while the net income fell to PLN 5.2m, down from PLN 13.5m a year earlier. In the whole year, sales grew 27 percent to PLN 1.3bn but the net income dropped from PLN 50.8m to PLN 40.8m. The management explains the results with a crisis in the meat sector caused by increasing production costs and strong zloty which hindered exports and encouraged big imports from Western Europe.
This year, however, should be a good one, Duda management promises. The company expects that meat prices will grow in the second or third quarter of the year.
“We will try to make advantage of the hard situation on the meat market and acquire interesting companies, plants and lots. Many companies in troubles come to us and want to enter our group. We are working over several interesting projects. We may start meat processing, which would let us increase our margins”, Maciej Duda, PKM Duda CEO said.
If the negotiations are successful, PKM Duda may issue new shares (with preemptive rights) to finance the acquisitions. Besides, the management promises that the effects of big investments in Ukraine will be visible in this and next year’s results.
(PLN 1 = EUR 0.284)